Better ocu pension plan
The General State Budget Law (Ley de Presupuestos Generales del Estado-PGE) for 2021, which came into force on January 1, 2021, includes these changes that will affect all pension plan participants. It is important to distinguish several points that we will detail below:
(*) The own contributions that the individual employer makes to employment pension plans or mutual benefit plans, of which, in turn, he/she is the promoter and participant or mutual fund member, as well as those made to corporate social welfare plans or collective dependency insurance of which, in turn, he/she is the policyholder and insured, will be considered as corporate contributions, for the purpose of calculating this limit.
The financial limit would be the absolute limit for contributions, which would currently be 2,000 euros. In other words, even if I want to, I cannot contribute more than 2,000 euros to an individual pension plan, it is forbidden to exceed the financial limit.
However, savers who have been saving more than 2,000 euros a year will have to look for other long-term savings options that also offer more advantageous taxation. Among the alternatives would be:
Indexed pension plan
The collection of the benefit or the exercise of the redemption right is only possible in the event of the occurrence of any of the contingencies or exceptional liquidity events regulated in the pension plan and fund regulations.
The value of mobilization rights, benefits and exceptional liquidity events depends on the market value of the pension fund’s assets and may result in significant losses.
Pension plans are savings-investment products that allow you to plan your savings comfortably and are designed to provide you with a capital or income at the time of retirement *. However, there are also other contingencies that allow the collection of the Pension Plan, such as disability, dependency, serious illness, long-term unemployment or death.
But, in addition, the Pension Plans are, nowadays, the product that allows you to obtain the maximum tax reduction in your income tax return * Past returns do not presuppose future returns. The investments made are subject to market fluctuations, so there is a possibility of losses in the invested capital.
Pension plan simulator
Until now, the maximum commission that could be charged for the processing of your pension plan was 1.5%. In 2014 it was decided to reduce the maximum commission from 2% to 1.5%. Now it will go to 1.25% in the case of mixed fixed income and from 0.25% to 0.20% for deposits. The maximum management fee for fixed income funds will be reduced to 0.85%. It will remain at 1.5% for equity and guaranteed funds.
With this idea, the Government intends to promote pension plans. The proposal consists of lowering commissions and measures to increase liquidity. The Government considers that these measures will make these plans more attractive to young people.
There is no exact science to say which plan is the most profitable. It depends on many variables. For example, it can vary a lot depending on the time period in which you make the income. The best option is to choose longer periods.
During 2017, it has been the variable income plans that have achieved the highest average annual return. This means that those people who have their retirement plan in variable income get a better investment result.
The fundamental characteristic of this expenditure must be that its allocation allows to increase the production capacity and productivity in the field of physical, economic and social structure”. Taken from the document DNP Glossary MGA – Public Investment:
The investment project is defined as the set of activities that are developed in a determined period, in which resources (financial, physical, human, environmental, etc.) are involved with the purpose of transforming a problematic situation of a specific population. The result is a situation in which the problem is eliminated or reduced.
With Agreement 257 of 2006 and other subsequent agreements, the administrative structure of the entities of the Capital District was conformed into functional or service sectors, each of which has a leading entity called sector head, who is in charge of the logistical coordination of the investments of his/her sector, thus ensuring that the actions carried out in the investment projects are related.